China Evergrande 3333

[winston]

not vested

DJ MARKET TALK: Evergrande Bounces 4.9%; Strong Execution -Citi

1528 [Dow Jones] Evergrande (3333.HK) finally snaps a five-session 16.0% slide, rebounding 4.9% to HK$3.20.

The recent losing streak was in part due to disappointing July property pre-sales, which was flat vs June's at CNY8.24 billion.

Still, Citigroup says that despite over bullish guidance and its aggressive image, "we believe the strong execution ability of Evergrande cannot be denied."

The house says only 3-4 China developers have the ability to achieve more than CNY7-8 billion/month contracted sales, even though Evergrande is exposed to tougher Tier-3/4 cities.

Also, expected FY12 earnings of more than CNY8 billion put it top 3 in the sector, while the balance sheet does not appear that stretched given it has been able to buy CNY15 billion of land year-to-date.

"Such leading sales/earning performance is not disappointing in itself," Citi says and keeps Evergrande at Buy, despite lowering its target price to HK$5.89 from HK$6.16.


Source: Dow Jones Newswire

[winston]

not vested

EVERGRANDE (03333.HK) 1H NP drops 21% after excluding fair value gains on investment properties, nil div

EVERGRANDE (03333.HK) reported that revenue for the six months ended 30 June 2012 increased by 15.5% from RMB32.06 billion in the corresponding period of 2011 to RMB37.04 billion, of which the revenue from the property development segment amounted to RMB36.49 billion, accounting for 98.5%.

Contracted sales for the six months ended 30 June 2012 amounted to RMB35.04 billion, accomplishing 43.8% of the planned contracted sales for the entire year; whereas the gross floor area of contracted sales was 5.768 million square metres.

Gross profit for the six months ended 30 June 2012 decreased by 5.7% to RMB10.60 billion.

Gross profit margin was 28.6%, down approximately 6.5%.

Net profit attributable to shareholders for the six months ended 30 June 2012 increased by 1.1% to RMB5.66 billion, representing earnings per share of 38 fen.

No interim dividend was declared. Net profit from core business excluding the fair value gains on investment properties decreased by 21.0% to RMB3.80 billion.

Gross floor area of new land reserves amounted to 17.443 million sq.m.

Total amount paid for land reserves amounted to RMB16.86 billion, representing average costs of RMB967/sq.m.

As of late June, the group held total cash of RMB24.74 billion; available funds totaled RMB60.86 billion.


Source: AAStocks Financial News

[winston]

not vested

Evergrande sticks to target

Evergrande Real Estate (3333) will maintain its sales target for the year even though core earnings slipped in the first half on lower home prices.

The developer, controlled by Guangzhou tycoon Hui Ka-yan, said interim net profit excluding property revaluation gains fell 21 percent year on year to 3.8 billion yuan (HK$4.6 billion) for the first six months, though revenue rose 16 percent to 37 billion yuan.

Gross margin slipped to 29 percent from 35 percent as unit prices plunged.

Cash on hand as at June 30 was 24.7 billion yuan - about 12 percent lower than at December 31. Net gearing ratio, which compares capital to debt, jumped to 96 percent from 69 percent.

But noting that the first seven months saw home pre-sales worth 43.3 billion yuan, or 54 percent of the 80 billion yuan target for the year, vice chairman Xia Haijun said the guideline stays.

Xia also said a fatal accident at its Venetian project in Jiangsu province would not affect sales because it occurred around the sports center and not the residential portion.

Hui reiterated that a June report on Evergrande by US-based shortseller Citron Research alleging a cash crunch and fraud was a "deliberate market manipulation with false information," and the matter is under police investigation.

http://www.thestandard.com.hk/news_deta ... 20829&fc=4

[winston]

not vested

DJ MARKET TALK: Evergrande Off 4.1%; Higher Gearing A Concern - JPM

1019 [Dow Jones] Evergrande (3333.HK) tumbles 4.1% to HK$3.06, as investors likely have focused on the two key negatives from its 1H12 results, i.e lower margins and higher gearing, especially the latter.

JPMorgan notes in 1H12, Evergrande recorded CNY11 billion free cash outflow, which resulted in its net gearing increasing from 72% as of end-2011 to 101% as of Jun-2012;

"investors in China property sector are quite sensitive to net gearing, and we believe this could drag the stock price performance of Evergrande for some time, until they have a clear solution to remedy the situation."

JPM slashes Evergrande's target by 32% to HK$3.90 but keeps the stock at Overweight, as "we believe most of them are already in the price and at current valuations, Evergrande looks cheap and could offer long-term value."

Source: Dow Jones Newswire

[winston]

not vested

EVERGRANDE (03333.HK) kept Buy, TP cut to $5.4 by Citi

EVERGRANDE (03333.HK)'s interim results came in line with estimate with 18% decline, but its core profit ranked the second in the industry.

Gearing ratio climbed from 72% to 100.9% due to aggressive acquisitions during the period.

The stock price performance has been unsatisfactory since early 2012 as its guided targets are too optimistic.

The chairman denied any spin-off of non-core business and has published the forecast of such business.

The fundamentals of EVERGRANDE remain solid with attractive valuation. EVERGRANDE is rated Buy with target price cut from $5.89 to $5.4.

Source: AAStocks Financial News

[winston]

not vested

DJ MARKET TALK: Evergrande Off 3.6%; High Gearing An Issue To Tackle

1447 [Dow Jones] Evergrande (3333.HK) is off 3.6% at HK$2.98, on top of its 3.1% post-results slide Wednesday, with many investors focusing on its balance sheet deterioration.

Still, given that the stock has fallen 37.7% from a June 13 high of HK$4.78, some bargain-hunting may emerge at below HK$3.00, which the stock had only traded briefly at in early January.

CIMB says Evergrande's 96% net gearing is a surprise, and although there is the possibility of the developer achieving its sales target, investors should be concerned about its poor balance sheet management.

The house cuts Evergrande to Trading Buy from Outperform, and lowers target price to HK$4.70 vs HK$6.30.

Separately, Macquarie cuts Evergrande to Neutral from Outperform, and lowers its target price to HK$3.06 vs HK$5.07;

"Evergrande is migrating from T3/4 to T1/2 cities to chase easier sales, higher margin and credit access, but we believe this transition will take 12 months to complete.

Meanwhile, slow sales and high net gearing are issues and we recommend investors to stay on the sidelines."


Source: Dow Jones & Company, Inc.

[winston]

not vested

EVERGRANDE (03333.HK) achieves contract sales of RMB7.18B in Aug, 63% of yearly target

EVERGRANDE (03333.HK) announced in August 2012, the Group achieved contracted sales amounting to RMB7.18 billion; contracted GFA aggregated 1,182,000 sq. m., down 21.1%, and 18.6% year-on-year, respectively.

The contracted average selling price for the month fell from RMB6,267 to RMB6,076 per sq. m.

The Group launched 7 new projects for sale during the month, increasing its total number of projects in a sales mode to 163.

From January to August 2012, the Group’s accumulated contracted sales amounted to RMB50.46 billion, thereby having 63.1% of its full-year contracted sales target completed.

Contracted GFA aggregated 8,276,000 sq. m. and contracted ASP was RMB6,097 per sq. m. for the eight-month period.


Source: AAStocks Financial News

[winston]

not vested

<Research Report>EVERGRANDE (03333.HK) downgraded to Neutral with TP cut to $3.4 by CS

Credit Suisse lowered its 2012-14 earnings per share forecasts for EVERGRANDE (03333.HK) by 11%, 20% and 25% respectively on expecting 2012-14 profit margins and 2013-14 incomes to be lower than estimates in general.

EVERGRANDE was downgraded to Neutral from Overweight with target cut to $3.4 from $3.9.

The broker deems EVERGRANDE will still have a tight liquidity.

It also expects profit margin of the developer will fall significantly if the latter wants to achieve its full-year sales target of RMB80 billion.


Source: AAStocks Financial News

[winston]

not vested

EVERGRANDE (03333.HK) still faces risk in trying to achieve FY target despite implementing price reduction strategy - CS

EVERGRANDE (03333.HK)'s contracted sales in September jumped 13% month-on-month and fell 11% year-on-year to RMB8.1 billion, said Credit Suisse, who pointed out the just-mentioned sales were in line with its estimate.

Recently, the developer has implemented a price reduction strategy, with a view to achieving the full-year sales target, said the broker.

Nevertheless, the broker is still able to recognize the possibility of EVERGRANDE failing to achieve the target.

EVERGRANDE was maintained Neutral with target price kept at $3.4.


Source: AAStocks Financial News

[winston]

not vested

EVERGRANDE (03333.HK)'s contracted sales soar 76% MoM in Oct to RMB14.26B

EVERGRANDE (03333.HK) announced that its contracted sales for October amounted to RMB14.26 billion with contracted area equaling 2.55 million square meters.

The average price recorded for October was RMB5,590 per square meter.

In the first ten months of 2012, the group's contracted sales amounted to RMB72.83 billion with contracted area equaling 12.282 million square meters.


Source: AAStocks Financial News